LEXINGTON, Ky. (Dec. 19, 2013) —In a commitment to keep the University of Kentucky community informed and engaged in the process of transitioning to a new financial model, UK Provost Christine Riordan and Executive Vice President for Financial Affairs Eric Monday issued the latest newsletter with updates on the financial model.
The e-newsletter was distributed Thursday, Dec. 19. Following is the full message:
In our last communication of the semester about the new financial model, we want to
discuss how another major pool of resources will be more transparently handled -- the
tuition dollars we receive from families and students.
UK this year will receive about $345 million of tuition revenue. Under the values-based
financial model, every college will be given credit for teaching students.
For the most part, except in special cases in which this formula is altered, 75 percent of
tuition dollars will go to the college of the faculty member where classes are taught
regardless of a student’s major. And 25 percent will go to the college where a student is
majoring. In cases of double majors, this portion of the tuition is shared if multiple
colleges are involved.
It's a transparent way of allocating the flow of tuition dollars throughout the university to
support the important work faculty do in educating students.
In our current incremental model, tuition doesn’t flow directly to the colleges where the
revenue is generated. Instead, the university allocates funds to colleges based upon
defined needs or areas where growth patterns indicate additional resources are
necessary. Without a direct formula allocation, it is more difficult for colleges to
determine where to invest revenue in a strategic fashion to create an innovative learning
environment to educate and graduate students in the most effective way possible. The
new model allows colleges to see how the funds are flowing and invest in important
areas as they continue to focus on quality and excellence.
Next semester, we will continue with regular communication about this important tool for
our institution. As always, the goal is to frequently and transparently continue the
dialogue over the next year about how the model will help us maximize the work we do
together. At the same time, as we continue that dialogue, we will be listening for ways
we can make improvements to the model. Thanks for the great feedback so far.
Thanks and have a happy holiday.